Commentary and Tracking of a Portfolio of Stocks using approach from "The Little Book that Beats the Market" by Joel Greenblatt aka Magic Formula Investing

Monday, October 23, 2017

Regulars

Regulars

"Where everybody knows your name". Just like a bar has regulars, MFI has regulars. Some stocks seem to be on the list forever. Why is that?

Well, first you get on the list by doing well in two categories, (1) return on invested capital and (2) earnings yield. If a company has a high ROIC and their income is relatively stable, they will continue to have a high ROIC. This is also often a function of excess cash as that drives down the denominator (invested capital).

Secondly, companies that have pretty consistent earnings, but limited growth tend to have higher earnings yields as the market just isn't very excited about slow/no grow companies right now.

Here is a listing of every stock that has been on my tracking portfolios since start of 2014. So that is 57 months of 50 stocks over $100m. Obviously these are just month-end snapshots and stocks can come on and off in between month ends. But still it is a data point.

Stock

Count

Pct

Cum
Pct

AGX

57

2.0%

2.0%

CSCO

57

2.0%

4.0%

PDLI

56

2.0%

6.0%

GME

49

1.7%

7.7%

BKE

45

1.6%

9.3%

STRA

44

1.5%

10.8%

NSR

43

1.5%

12.3%

PBI

42

1.5%

13.8%

IDCC

42

1.5%

15.3%

USNA

40

1.4%

16.7%

UIS

40

1.4%

18.1%

DLX

40

1.4%

19.5%

RPXC

38

1.3%

20.8%

AAPL

37

1.3%

22.1%

CA

37

1.3%

23.4%

CPLA

36

1.3%

24.7%

VEC

35

1.2%

25.9%

VIAB

35

1.2%

27.1%

IQNT

35

1.2%

28.4%

PETS

33

1.2%

29.5%

APOL

33

1.2%

30.7%

HPQ

32

1.1%

31.8%

NHTC

31

1.1%

32.9%

SPOK

30

1.1%

33.9%

RGR

29

1.0%

34.9%

UTHR

28

1.0%

35.9%

DHX

28

1.0%

36.9%

GILD

27

0.9%

37.9%

TDC

26

0.9%

38.8%

LQDT

26

0.9%

39.7%

HRB

26

0.9%

40.6%

MSB

25

0.9%

41.5%

FLR

24

0.8%

42.3%

WTW

24

0.8%

43.2%

AVID

24

0.8%

44.0%

MCFT

24

0.8%

44.8%

MSGN

23

0.8%

45.6%

KING

23

0.8%

46.5%

KORS

23

0.8%

47.3%

MYGN

23

0.8%

48.1%

RTN

22

0.8%

48.8%

EBIX

22

0.8%

49.6%

ESI

22

0.8%

50.4%

ENTA

21

0.7%

51.1%

NOC

21

0.7%

51.9%

BPT

21

0.7%

52.6%

MSFT

21

0.7%

53.3%

HLF

20

0.7%

54.0%

SWHC

20

0.7%

54.7%

COH

20

0.7%

55.4%

BAH

20

0.7%

56.1%

SYNT

19

0.7%

56.8%

ICON

19

0.7%

57.5%

WILN

18

0.6%

58.1%

PFMT

18

0.6%

58.7%

ONE

18

0.6%

59.4%

bbsi

18

0.6%

60.0%

DEPO

17

0.6%

60.6%

BRCD

17

0.6%

61.2%

QCOR

17

0.6%

61.8%

BCOR

16

0.6%

62.4%

AMAG

16

0.6%

62.9%

IILG

16

0.6%

63.5%

OUTR

15

0.5%

64.0%

ACHI

15

0.5%

64.5%

AMCX

15

0.5%

65.1%

GHC

15

0.5%

65.6%

NATR

15

0.5%

66.1%

LFVN

15

0.5%

66.6%

TZOO

14

0.5%

67.1%

TGNA

14

0.5%

67.6%

QCOM

14

0.5%

68.1%

GTIV

14

0.5%

68.6%

TIVO

14

0.5%

69.1%

MBUU

14

0.5%

69.6%

nus

14

0.5%

70.1%

ATVI

14

0.5%

70.6%

CLCT

13

0.5%

71.0%

VCI

13

0.5%

71.5%

MPAA

13

0.5%

71.9%

LO

13

0.5%

72.4%

CHE

13

0.5%

72.8%

SCMP

13

0.5%

73.3%

PPC

12

0.4%

73.7%

ESRX

12

0.4%

74.1%

LPS

12

0.4%

74.6%

TTWO

12

0.4%

75.0%

CRUS

12

0.4%

75.4%

GNI

11

0.4%

75.8%

NSU

11

0.4%

76.2%

TRNC

11

0.4%

76.6%

NLNK

11

0.4%

76.9%

CALM

11

0.4%

77.3%

WNC

10

0.4%

77.7%

FPRX

10

0.4%

78.0%

GORO

10

0.4%

78.4%

BLBD

10

0.4%

78.7%

LCI

10

0.4%

79.1%

INTX

10

0.4%

79.4%

HSII

10

0.4%

79.8%

nath

9

0.3%

80.1%

BBY

9

0.3%

80.4%

UNTD

9

0.3%

80.7%

VDSI

9

0.3%

81.1%

VG

9

0.3%

81.4%

SPRT

9

0.3%

81.7%

APEI

9

0.3%

82.0%

EGL

9

0.3%

82.3%

VNCE

9

0.3%

82.6%

ANIK

9

0.3%

82.9%

TIME

9

0.3%

83.3%

OMC

9

0.3%

83.6%

CACI

8

0.3%

83.9%

NLS

8

0.3%

84.1%

TSRA

8

0.3%

84.4%

AOBC

8

0.3%

84.7%

PTIE

8

0.3%

85.0%

KFY

7

0.2%

85.2%

SSNI

7

0.2%

85.5%

FIT

7

0.2%

85.7%

AWRE

7

0.2%

86.0%

STX

7

0.2%

86.2%

MO

7

0.2%

86.5%

TNAV

7

0.2%

86.7%

SAI

7

0.2%

86.9%

CNVR

7

0.2%

87.2%

SQBG

7

0.2%

87.4%

PSDV

7

0.2%

87.7%

MNKD

6

0.2%

87.9%

LBMH

6

0.2%

88.1%

ADMS

6

0.2%

88.3%

AFOP

6

0.2%

88.5%

CF

6

0.2%

88.7%

STRZA

6

0.2%

88.9%

AGTC

6

0.2%

89.2%

CRTX

6

0.2%

89.4%

DELL

6

0.2%

89.6%

ITRN

6

0.2%

89.8%

RHI

6

0.2%

90.0%

AUXL

5

0.2%

90.2%

SPPI

5

0.2%

90.4%

XLS

5

0.2%

90.5%

DISCA

5

0.2%

90.7%

EGY

5

0.2%

90.9%

RAI

5

0.2%

91.1%

MIK

5

0.2%

91.2%

RCM

5

0.2%

91.4%

ETM

5

0.2%

91.6%

DNB

5

0.2%

91.8%

VVUS

5

0.2%

91.9%

INSY

4

0.1%

92.1%

VC

4

0.1%

92.2%

FRAN

4

0.1%

92.4%

GTAT

4

0.1%

92.5%

DIN

4

0.1%

92.6%

WCRX

4

0.1%

92.8%

PENN

4

0.1%

92.9%

CJREF

4

0.1%

93.1%

USMO

4

0.1%

93.2%

FFIV

4

0.1%

93.3%

LEE

4

0.1%

93.5%

GIB

4

0.1%

93.6%

SAIC

4

0.1%

93.8%

PCO

4

0.1%

93.9%

TPUB

4

0.1%

94.0%

NCMI

4

0.1%

94.2%

VA

3

0.1%

94.3%

EGRX

3

0.1%

94.4%

MCK

3

0.1%

94.5%

MANT

3

0.1%

94.6%

LDOS

3

0.1%

94.7%

DMRC

3

0.1%

94.8%

CHKE

3

0.1%

94.9%

MEET

3

0.1%

95.0%

PRSC

3

0.1%

95.1%

MDCA

3

0.1%

95.2%

DXM

3

0.1%

95.3%

FOXA

3

0.1%

95.4%

ABC

3

0.1%

95.5%

csgs

3

0.1%

95.6%

POZN

3

0.1%

95.8%

SMT

3

0.1%

95.9%

SRDX

3

0.1%

96.0%

KRFT

3

0.1%

96.1%

GPRO

3

0.1%

96.2%

UBNT

3

0.1%

96.3%

RECN

3

0.1%

96.4%

ENDP

3

0.1%

96.5%

SNDK

3

0.1%

96.6%

EVOL

3

0.1%

96.7%

NDZ

3

0.1%

96.8%

EXPR

3

0.1%

96.9%

IRMD

3

0.1%

97.0%

BWC

3

0.1%

97.1%

GHM

2

0.1%

97.2%

MD

2

0.1%

97.3%

IPG

2

0.1%

97.3%

NTI

2

0.1%

97.4%

CREG

2

0.1%

97.5%

ORCL

2

0.1%

97.5%

SALE

2

0.1%

97.6%

CARS

2

0.1%

97.7%

CTSH

2

0.1%

97.8%

NTIP

2

0.1%

97.8%

PDFS

2

0.1%

97.9%

CXRX

2

0.1%

98.0%

VGR

2

0.1%

98.0%

MED

2

0.1%

98.1%

AFAM

2

0.1%

98.2%

ABT

2

0.1%

98.2%

SAVE

2

0.1%

98.3%

BTH

2

0.1%

98.4%

BIIB

2

0.1%

98.5%

HFC

2

0.1%

98.5%

XENE

2

0.1%

98.6%

SVLC

2

0.1%

98.7%

NVDA

2

0.1%

98.7%

LEA

2

0.1%

98.8%

SYNA

1

0.0%

98.8%

PMTS

1

0.0%

98.9%

NCIT

1

0.0%

98.9%

KLIC

1

0.0%

98.9%

JCOM

1

0.0%

99.0%

AMGN

1

0.0%

99.0%

EXLS

1

0.0%

99.1%

REX

1

0.0%

99.1%

PII

1

0.0%

99.1%

MKSI

1

0.0%

99.2%

DGX

1

0.0%

99.2%

NVEC

1

0.0%

99.2%

SVU

1

0.0%

99.3%

DLB

1

0.0%

99.3%

MDP

1

0.0%

99.3%

GD

1

0.0%

99.4%

GNTX

1

0.0%

99.4%

TVL

1

0.0%

99.4%

BOJA

1

0.0%

99.5%

TVTY

1

0.0%

99.5%

PMD

1

0.0%

99.5%

TWX

1

0.0%

99.6%

POOSF

1

0.0%

99.6%

ENZN

1

0.0%

99.6%

EGOV

1

0.0%

99.7%

CSVI

1

0.0%

99.7%

KBR

1

0.0%

99.8%

CPIX

1

0.0%

99.8%

ACIA

1

0.0%

99.8%

BLC

1

0.0%

99.9%

AKRX

1

0.0%

99.9%

BODY

1

0.0%

99.9%

KLAC

1

0.0%

100.0%

SCSS

1

0.0%

100.0%

So AGX and CSCO (both with a lot of excess cash) have been on all 57 lists.